Estate account and FDIC

Does it have to be one account? Divide it among as many banks as necessary to stay under the $100K limit.

-- Doug

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How do you mean that? Our banking system is extremely solid, perhaps the best it has been in all of human history. Your chances of losing even a dime are so remote that one can hardly even think of a science fiction plot where you would lose any money. You should at least make sure that your accounts are insured, but there are far more things to lose sleep over than the minute chance of losing money at a bank.

-john-

I can do that I suppose.. I just wondered since a single account will have several ultimate beneficiaries will it only be covered for 100k? It may well be that the estate is considered only one person. I don't know at this point.

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Misconception Number 10: An account for a deceased person's estate is insured up to $100,000 for each person who will inherit money from the estate.

Many people hear about the FDIC having per-beneficiary coverage for trust accounts and automatically assume that a deceased person's estate account will be protected by the FDIC for up to $100,000 per heir. But that is only the case for deposits in revocable trust accounts with qualifying beneficiaries (as well as certain irrevocable trust accounts, which we haven't addressed here). Under the FDIC's rules, an estate account is insured along with any individually owned account of the deceased person (any checking accounts or CDs the person owned by himself or herself, and not including IRAs) and the grand total would be insured to $100,000.

see

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